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@taxchallenged2 wrote:
I scroll down to the Business Items section. Next to the Schedule K-1 update button is the total figure and it shows $0.
That is typical because the figures you enter from your K-1 into the program are distributed throughout various forms and, thus, the figure next to the K-1 will be $0. For example, the interest and dividend income from the K-1 will appear on Schedule B.
Also, the foreign income would generally be passive and sourced at the beneficiary level since the beneficiary received the income (as a distribution).
Thank you. That information finally seeped into my brain after I had posted this question. After entering the K-1 information I looked back at the income summary and noticed the 1099-int and 1099-div numbers had increased considerably from the smaller amounts that had been input from other interest and dividends she had from other sources.
I had all the same issues and questions as user taxchallenged2, however, I question whether the income category for Box 14 is really "Passive". At the beginning of the K-1 sequence, TurboTax asks the user to "Enter amounts from boxes 1 and 2" and includes Boxes for Interest, Ordinary Dividends, and Qualified Dividends. When I click on the explanatory link for "boxes 1 and 2" it says that the portfolio income is NOT passive and I don't see why it would be different for the "A-Tax-exempt interest" and "B-Foreign taxes" Box 14 codes. Here is the full explanation TurboTax provides:
"Portfolio income is usually income from investments.
It might be from interest, dividends, royalties, a real estate investment trust, a regulated investment company, other fund/cooperatives income, or income from the disposition of property held for investment.
Portfolio income is taxable to each beneficiary to the extent this income is reported on your Schedule K-1 for estates or trusts.
Portfolio income and losses are not considered passive, and portfolio income cannot be used to offset passive losses."
The reason I have for questioning this is that TurboTax fills out Schedule E with the name of the Trust, but it doesn't include any income or figures beyond that, and all the dividend and other income is appearing properly under Schedule B, etc.
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